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PPP HELP What is the difference between the Covered Period and the Base Period? The Covered Period is the time during which qualified payroll and non-payroll costs paid or incurred by the borrower can be considered for forgiveness. It begins on the origination date of the covered loan and, for most borrowers, ends 24 weeks following the loan disbursement date (if your loan was disbursed before June 5, 2020, you have the option to choose an 8-week or 24-week covered period...). The Base Period is the period by which a borrower must compare its average weekly FTE employees to that of the Covered Period in order to determine the reduction in FTE. You can choose from the following base periods: January 1, 2020 February 29, 2020 February 15, 2019 June 30, 2019 If you’re a seasonal business, you can elect a reference period consisting of any consecutive 12-week period between May 1, 2019 and September 15, 2019. See more

The Small Business Administration (SBA) recently introduced a new streamlined application form, SBA Form 3508S, for borrowers who received a Paycheck Protection Program (PPP) loan of $50,000 or less. Need help? Email us for a consultation. [email protected]

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Ways to Pay Your Taxes: In response to the COVID-19 Outbreak, the IRS has extended the tax filing and payment deadline to July 15, 2020. Make sure to file and pay by that date to avoid paying penalties and interest. Here are some ways you can pay your taxes. 1. Direct DebitThe IRS Direct Debit system (also known as Electronic Funds Withdrawal) allows the IRS to withdraw the amount you owe directly from your checking or savings account on a date of your choosing. Direct Debi...Continue reading

PPP update: PPP Flexibility Act, which lawmakers passed earlier this month. The act and updated Small Business Administration (SBA) rules give borrowers more time and flexibility for spending their PPP funds. The addendum addresses these changes, such as: Giving borrowers up to 24 weeks (previously eight weeks) to spend loan funds in the covered period. Increasing the cap on the amount forgiven that may be attributed to eligible non-payroll costs to 40% (up from 25%). In ...order to qualify for full loan forgiveness, 60% (down from 75%) of the amount of funds must be spent for eligible payroll expenses. Changing the loan payment deferral period based on the date the forgiveness amount is paid by the SBA. The deferral period for a borrower who does not apply for forgiveness of a PPP loan ends 10 months after the last day of the covered forgiveness period. See more

The Small Business Administration (SBA) continues to release updated guidance. Here's what you should know: How to account for payments to furloughed employees during the Covered Period How to calculate payroll for owner-employees and self-employed individuals... How to calculate full-time equivalency (FTE) employee reductions and the potential impact to your loan forgiveness amount If employers restore FTE employee levels as well as salaries and wages by June 30, 2020, the FTE Safe Harbor rule may apply. More to come!

PPP FORGIVENESS INFO: SBA released the application that can be used for forgiveness of the PPP. If you received the PPP, you will apply through your bank. This application with instructions directly from the SBA will help you to get organized. https://home.treasury.gov//3245-0407-SBA-Form-3508-PPP-For

UPDATE: The SBA has extended its deadline until May 14 for companies that believe they don't meet its updated guidance. We continue to work hard to administer the Paycheck Protection Program (PPP) for our customers. Please note for PPP loans funded, borrowers will likely be required to make the same certifications of eligibility as a condition of forgiveness. We would like to remind you:...Continue reading

PPP Loan Forgiveness Upadte: Important information about what will be required for the forgiveness of the PPP loan: The critical period is the 8 weeks starting the day the funds are received.... The application for forgiveness of the PPP loan must be filed with the bank where the loan was funded. The most that can be forgiven to any one employee is $15,385. It is suggested that you open up a separate checking account to track the funds. You will need to provide support for how the funds are spent. Interest will start the date the loan is funded and the unforgiven portion will have interest. If your number of full time equivalent employees go down during the 8 weeks, or if your salary is reduced by more than 25%, then the forgivable portion will be reduced. At least 75% of the funds must be on payroll costs. The remainder can be spent on rent, mortgage interest or utilities.

New SBA Guidance for the PPP: The new guidance strengthens some of the language regarding qualifications for a Paycheck Protection Program Loan. Specifically, we would like to remind you: 1. When you applied you certified that current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.... 2. You have the opportunity to withdraw your application if you do not feel you meet this criteria. 3. If you’ve already been funded, and you believe you do not meet this criteria, you can repay your loan by May 7, 2020 and the SBA will treat that repayment as being in good faith. AND Question: Do businesses owned by large companies with adequate sources of liquidity to support the business's ongoing operations qualify for a PPP loan? Answer: In addition to reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application. Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that "current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant." Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith.

SBA Loan Update: The SBA is limiting the forgivable advance of the EIDL to $1000 per employee. From an email from the SBA to applicants: To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.... No official posted guidance from the SBA is available on their site.

Help with some of terms of the loan: When you are filling out your bank's application there's a question about whether of not you're a Eligible Passive Company. SBA defines an Eligible Passive Company or EPC as an entity that does not engage in regular and continuous business activity, which leases real or personal property to an Operating Company for use in the Operating Company's business. Pay attention to the attestation: ... "I understand that loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities, and not more than 25% of the forgiven amount may be for non-payroll costs." You're agreeing that the loan is primarily for payroll costs and that no more than 25% of the forgiven portion can be for other costs.

Quickbooks has launched a payroll protection application process. https://quickbooks.intuit.com//paycheck-protection-program/